Throughout August, Binance funding rates stayed unusually high, hovering between 0.005% and 0.008%.
This shows traders were still paying a premium to keep long positions open, even as Bitcoin slipped more than 10% from its record highs near $124,500 established over a week ago.
In other words, optimism didn’t fade. Instead, many traders doubled down, convinced the pullback was just a temporary setback. That conviction finally snapped once the price fell deep enough to trigger a wave of forced liquidations.
On Aug. 25, Bitcoin broke through $111,000, liquidating over $70 million in long positions within hours.
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